Hi David,

This is a letter I wrote to The Calgary Herald after reading about record
profits made by various oil companies. It didn’t get published, nor did any
other letters related to the topic. Which is strange, considering Exxon
made the most money a company has ever made in corporate history.

Anyway, just wondering if my points are valid from your perspective. Do you
think Albertans should be asking for a higher royalty rate? Is this why?

Re: Oil profits hit all-time high

Now I definitely fail to see any argument against raising Alberta’s 1%
royalty rate. It’s already been criticized for being unnecessarily low
considering the rising value of oil and the substantially higher royalty
rates that Norway and Alaska call for. Meanwhile, a number of oil companies
are making record profits while strained public services all over Alberta
complain of a seemingly mysterious lack of funds. Essentially, Albertans
are being asked to make sacrifices to support oil growth without getting much
in return.

Could oil companies still afford to operate and invest in the oilsands
despite a higher royalty rate? These record profits seem to suggest that
this is very possible. Why are we excitedly rushing towards a lower quality
of life?

Andrew Payne

Calgary, Alberta